I am sure a few junior miners can relate to this issue over the past few years...

Regards - VHF

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Farallon seeks identity of forum poster "chugwater"

2011-04-04 14:08 ET - Street Wire

by Mike Caswell

Farallon Mining Ltd., the Vancouver miner recently taken over by Nyrstar NV, is looking to identify yet another Stockhouse poster that it claims defamed it. In an application filed in the Supreme Court of British Columbia on March 31, 2011, Farallon is seeking the real name of a poster known as "chugwater." According to Farallon, chugwater was responsible for posts that accused the company of stealing its Campo Morado property in Mexico.

The application comes as part of the fourth case that Farallon has launched against a Stockhouse poster. Prior suits named Australian poker player David St. Eloi, Edmonton resident Robert Butler, and Edmonton couple Ronald and Donna Arnold. In each instance, the defendants posted material on-line that accused the company of taking Campo Morado from an individual named David Hermiston without paying him. In March, 2010, the company won a $425,000 decision against Mr. Butler (which it is trying to collect). The other defendants, who deny any wrongdoing, still await trial.

Farallon's notice of claim

Farallon initially filed a notice of claim against a John Doe, also known as "chugwater," at the Vancouver courthouse on Oct. 21, 2010. According to the claim, chugwater wrote a series of posts between February, 2009, and October, 2010, which said that Farallon would never have good title to its Campo Morado property.

The suit quoted an Oct. 13, 2010, post, which accused Farallon of conspiring with Pedro Villagran, a lawyer who was holding 51 per cent of the property in trust for Mr. Hermiston. "Hermiston toured Farallon representatives on the property and negotiated with them. Then, Farallon made a deal with Hermiston's attorney and through breaches of fiduciary relationships and forged documents was given title to Campo Morado. Hermiston's attorney Villagran received stock and stock options worth in excess of $10 million dollars together with seats for he and his son on Farallon's Board of Directors. Hermiston received not one dime of CONSIDERATION," the post stated.

The posts also compared Farallon's acquisition of Campo Morado with Nazi art thefts. "Farallon may tinker with Mexico's legal system, pull rabbits out of hats and prevail for a time, but time is not on Farallon's side," a message read. "Sooner or later, in Mexico or some other jurisdiction where Farallon may be served, truth and justice will prevail and Farallon will be required to return Campo Morado to Hermiston. Until that day, Farallon and all who participate financially with Farallon enjoying their spoils should be looking over their shoulders, just as those who obtained stolen art works from the Nazi regime have looked and continued to look, because they will never have good title, not in a thousand years."

Farallon said another of the messages, dated Feb. 14, 2009, accused the company of bribing a judge. It read: "Hermiston has been litigating now for over 10 years in an attempt to have title of Campo Morado restored to him. His efforts have been frustrated by Farallon's having compromised judges, title documents being filed over amparos, blizzards of amparos, etc."

Another post that day accused Farallon of criminal conduct, the suit stated. It read: "To wrap things up, criminal charges are expected. Hunter and Jennings have died and will therefore have saved themselves from criminal penalties, but others survive who were involved in the theft of Campo Morado and its cover up."

The suit listed several other posts, from April, August and February, 2009, which contained similar statements. Farallon said the posts meant that the company had engaged in theft and had mistreated Mr. Hermiston. According to the suit, each and every post was false and "grossly defamatory." The company further claimed that the messages were written with malice and were intended to harm its reputation.

Farallon sought damages for libel, punitive damages, a permanent injunction preventing future posts, as well as interest and court costs. Joel Hill of Vancouver law firm Hakemi & Company filed the claim on Farallon's behalf.

Application for chugwater's name

In its March 31 application, Farallon is asking for an order that would help it identify the user known as chugwater, but the company may have to go to some legal effort to find that person. Chugwater's IP address (which Stockhouse provided after receiving an earlier court order) belongs to an Internet service provider in Arizona. This means that the B.C. courts cannot compel the ISP to identify the user. As a result, the company has asked the judge to write a letter to the U.S. Federal Court in Arizona in support of a motion for the user's name. Presumably Farallon intends to file such a motion upon receipt of the letter.